International Journal of Business

Management & Research (IJBMR)

ISSN(P): 2249-6920; ISSN(E): 2249-8036
Vol. 6, Issue 3, Jun 2016, 51-56
TJPRC Pvt. Ltd

A STUDY ON CUSTOMER AWARENESS ON RETURN POLICY INITIATIVES

IN SELECT E-COMMERCE WEBSITES WITH SPECIAL REFERENCE
TO APPAREL SECTOR, IN SUBURBS OF MUMBAI, INDIA
SARIKA PUNEKAR1 & R GOPAL2
1

Research Scholar, D Y Patil University, School of Management, Navi Mumbai, Maharashtra, India
2

Professor, D Y Patil University, School of Management, Navi Mumbai, Maharashtra, India

ABSTRACT
The progress of E-commerce has made a significant impact in the movement of goods. Varieties of products
are made accessible to consumers via the electronic means of business dealings widely termed as B to C transactions.
The apparel sector is conquered by the customers by E-shopping services, however the major chunk of the consumers
are ignorant about the return policies of the goods shopped via E-medium. The prime objective of an organization is to
deliver the goods at the doorstep of the customer by infinitesimal charges and provide quality product to increase the
level of satisfaction of the customer. Although the satisfaction level is not up to the mark as some customers dont get

profitability of the organization.

In order to prevent the customer drain several organizations that are engaged in the apparel sector which
uses internet as a media, takes initiative to accept the defective product from the consumer. Mumbai region is one of the
pecuniary hubs which are the backbone of the Indian economy, the customers are not vigilant about the return policy
that the organization has incepted to increase the customer satisfaction.

Original Article

their expected product, Such events has impact on severe customers base, consequently it has a severe impact on the

The study analyses that major organizations should implement the necessary policies that elevate the
customer awareness about the acceptance of the defected products.
KEYWORDS: Return Policy, Customer Awareness, Apparel Sector

Received: Apr 22, 2016; Accepted: May 07, 2016; Published: May 23, 2016; Paper Id.: IJBMRJUN20165

INTRODUCTION
The Indian apparel market is estimated to exhibit a quantum leap in forth coming years. The contribution
of apparel with reference to the Indian context is not more than 7%. This value coincides with more than 38 billion
USD.
In addition with the escalating demand with the accessories makes the Indian apparel market lucrative.
The apparel market has undergone series of changes and opportunities.
The challenges related with these opportunities are the indicators of the nations of upcoming apparel
market. However the parameter of inflation cannot be ignored towards the demand for apparels. In the early 19th
century was an era where the IT sector was booming. Thereinafter the inception of E-commerce made life
customers easy wherein the consumers started shopping online. The attractive range of products at convenience of

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Sarika Punekar & R Gopal

shopping from home made the customers addict to this mode. This made the apparel industry make its presence felt in a
short period of time. When the customer who buys the apparel and his/her expectation is not met, creates a lacuna between
the relationship of customer and E-commerce websites. This gap can be bridged by incepting different policies which are
in the favor of the customers whereby. The customers are allowed to return the products in case they are not satisfied with
the same.

LITERATURE REVIEW
Li, Zhaolin (Erick) Lu, Qiang; Talebian, 2015: The popularity of online retailing has created great opportunities
and challenges for retailers. A key challenge faced by many retailers is the choice between the clicks, the
bricks-and-mortar, and the bricks-and-clicks strategies. In this paper, we develop a comprehensive framework for selecting
the appropriate distribution channel given assortment, logistics and consumer characteristics. Under the traditional
bricks-and-mortar retail model, the retailer displays and sells the assortment in a physical store, whereas under the online
retail model, the retailer accepts orders online and delivers the products offline.
India Apparel and Footwear Market Outlook, Research and Market Brochure 2015: The report covered market
size of the apparel industry, segmentation on the basis of product, industry structure and demographics, SWOT analysis
and future outlook of the apparel industry. It offered market information of the footwear industry, segmentation, SWOT
analysis and future outlook. The size of the Indian apparel market has increased from USD 17,803 million in 2003 onwards
to USD 32,458 million in 2009 at a CAGR of 10.5%. During 2007-2009, the industry registered a double digit growth rate.
The country has witnessed an increase in the consumer expenditure on apparel. Individuals have become more
conscious regarding their outerwear and are willing to spend more on the apparels. The rising population along with the
increase in the disposable income of the consumers has led to the increase in the expenditure in the apparel sector.
Samar Mukhopadhyay; Reverse logistics in e-business: Optimal price and return policy 2003: In an Internet
direct sales supply chain, the customers buy direct from the manufacturer sacrificing the benefit of physical inspection of
the product. This increases the likelihood that customers will have some dissatisfaction with the product and would like to
return it. A clearly explained and generous return policy, then, will be welcome by the customers and therefore will
enhance demand. From the manufacturer's point of view, this will increase revenue, but will also increase cost due to
increased likelihood of return. This paper develops a profit-maximization model to obtain optimal policies for price and the
return policy in terms of certain market reaction parameters. It obtains jointly a number of managerial guidelines for using
marketing and operational strategy variables to influence the reaction parameters so as to obtain the maximum benefit from
the market.
Nandita Abraham; The apparel aftermarket in India- A case study focusing on reverse logistics 2011:
The researcher in this research has focused on apparel aftermarket in India. Which clarified the processes involved from
the procurement of clothing until its sales in the aftermarket? The paper also emphasized on the need of understanding the
apparel market in India and how reverse logistic may be looked on as a tool to manage post-first consumer apparel market.
The paper also identified the collaboration between stakeholders can improve logistic, business predictability and margins.
Researcher in her study found that the fragmentation and isolation of stakeholders businesses is identified as the
cause of most stakeholder inefficiencies. It was found that benefits accrued by collaboration in the reverse logistics chain
are increased market knowledge, more predictable business and better margins.
Impact Factor (JCC): 5.3125

NAAS Rating: 3.07

A Study on Customer Awareness on Return Policy Initiatives in Select E-Commerce

Websites with Special Reference to Apparel Sector, in Suburbs of Mumbai, India

53

LIMITATIONS OF THE STUDY

The research was specifically focused on awareness of customers about the return policy. This study was also
restricted to Mumbai city only and Due to time constraint only 126 completely filled questionnaires were considered for
research.

OBJECTIVE OF THE STUDY

To understand the awareness of Return policies of E-commerce businesses among customers.
To understand the various return policies offered by E-commerce businesses.

HYPOTHESIS OF THE STUDY

H01: There is no significant awareness of return policy of E-commerce Businesses among customers
H11: There is no significant awareness of return policy of E-commerce Businesses among customers.
Sample Size
Of the 150 respondents to whom questionnaire were given 126 were received. This forms the sample size.

DATA ANALYSIS
Awareness of the Return Policies of the E-Commerce Website

Figure 1
The data shows 68% are not interested to know their E-tailers Return Policies, 18% are not aware about their
E-tailers Return policies whereas 6% respondents are partially aware and 8% respondents have fair idea about their
E-tailerss Return policies.
Awareness of Return Policy Options
It has been seen that out of listed return mangement options 69% respondents are strongly aware about Cashback
option,56% are not aware about Coupon Option given by E-tailer under Return Management, 72% are strongly aware of
the replacement policy whereas 67% are not aware of the point redemption.
When do you look for an E-Tailers Return Policy?

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Sarika Punekar & R Gopal

Figure 2
It has been observed that 61% look for return policies only when it is needed, 32% look for it before purchasing,
5% check the same both before and after purchase and 2% respondents are not at all interested to look for the return
policies.

CONCLUSIONS
The findings indicate that there is less awareness among the customers about the return policies initiatives in
select Ecommerce websites with special reference to Apparel sector, in suburbs of Mumbai.

RECOMMENDATIONS
On the basis of the interpretations it is recommended that the organization should implement necessary policies to
increase awareness about return among the consumers.
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Barlyn, S. (2007). In returns, there are no guarantees, Star Tribune, Vol. 28 March, p.8.

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Impact Factor (JCC): 5.3125

NAAS Rating: 3.07

A Study on Customer Awareness on Return Policy Initiatives in Select E-Commerce

Websites with Special Reference to Apparel Sector, in Suburbs of Mumbai, India

55

11. Mollenkopf, D.A., Rabinovich E., Laseter T.M. and Boyer K.K. (2007). Managing Internet product returns: A focus on
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http://www.researchgate.net/publication/242344546_Reverse_logistics_in_e-business_Optimal_price_and_return_policy

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